© Reuters. Investing.com – The U.S. dollar was stronger against other currencies on Monday ahead of an expected Federal Reserve rate cut later in the week.
The , which measures the greenback’s strength against a basket of six major currencies, rose 0.1% to 97.847 by 10:34 AM ET (14:34 GMT).
The Fed is expected to cut rates by at least 25 basis points, its first rate cut in a decade. Chances of a 50-basis-point cut fell after upbeat data, including Friday’s GDP report.
Markets expect an additional reduction to rates in September, with more than a 50% chance of a third cut by the end of the year.
Meanwhile, U.S. President Donald Trump continued to criticize the Fed, tweeting that “a small rate cut is not enough, but we will win anyway!”
Trump has been critical of the central bank for failing to cut rates sooner.
The dollar rose against the Japanese yen, with up 0.1% to 108.69.
Sterling fell to its lowest rate in more than two years amid fears that the U.K. will leave the European Union without a deal. Michael Gove, the recently appointed cabinet boss in the new government, wrote in the Sunday Times that the U.K. government is assuming a no-deal Brexit.
Newly-appointed U.K. Prime Minister Boris Johnson hopes to meet with EU leaders to negotiate a deal, but EU officials have said they will not change the terms of the draft agreement made by former PM Theresa May.
slumped 1% to 1.2255, while was flat at 1.1128, and was unmoved at 1.3163.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
